Media webcast presentation Royal Dutch Shell second quarter and half year results 2011

  • 1,162 views
Uploaded on

Presentation slides of the media webcast Peter Voser, Chief Executive Officer of Royal Dutch Shell, hosted of the 2011 second quarter results on Thursday July 28, 2011 at 09:00 BST (10:00 CEST / 04:00 …

Presentation slides of the media webcast Peter Voser, Chief Executive Officer of Royal Dutch Shell, hosted of the 2011 second quarter results on Thursday July 28, 2011 at 09:00 BST (10:00 CEST / 04:00 EDT)

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,162
On Slideshare
0
From Embeds
0
Number of Embeds
3

Actions

Shares
Downloads
30
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTSTHE HAGUEJULY 28, 20111 Copyright of Royal Dutch Shell plc 28/7/2011
  • 2. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTSPETER VOSERCHIEF EXECUTIVE OFFICER2 Copyright of Royal Dutch Shell plc 28/7/2011
  • 3. DEFINITIONS AND CAUTIONARY NOTEThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell”are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also usedto refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company orcompanies. „„Subsidiaries‟‟, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectlyhas control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not controlare referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation,associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/orindirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of allthird-party interest.This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other thanstatements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based onmanagement‟s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of RoyalDutch Shell to market risks and statements expressing management‟s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statementsare identified by their use of terms and phrases such as „„anticipate‟‟, „„believe‟‟, „„could‟‟, „„estimate‟‟, „„expect‟‟, „„intend‟‟, „„may‟‟, „„plan‟‟, „„objectives‟‟, „„outlook‟‟,„„probably‟‟, „„project‟‟, „„will‟‟, „„seek‟‟, „„target‟‟, „„risks‟‟, „„goals‟‟, „„should‟‟ and similar terms and phrases. There are a number of factors that could affect the futureoperations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including(without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell‟s products; (c) currency fluctuations; (d) drilling and production results;(e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potentialacquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject tointernational sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic andfinancial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmentalentities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-lookingstatements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not placeundue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell‟s 20-F for the year ended 31 December,2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of thedate of this presentation, 28 July 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-lookingstatement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from theforward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in thefuture, or that they will be made at all.We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us fromincluding in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.You can also obtain these forms from the SEC by calling 1-800-SEC-0330.3 Copyright of Royal Dutch Shell plc 28/7/2011
  • 4. PERFORMANCESTRATEGY PRIORITIES Q2 & H1 SUMMARY • Q2 2011 CCS earnings $6.6 billion • Growth performance • Asset sales progress • Started up three major projects: Qatargas 4, Pearl GTL Train1, AOSP-1 • Innovation, full value chain, long-life returns • New upstream investment for medium term growth • Raízen joint venture Competitive performance – Profitable growth – Sharper delivery EARNINGS CCS BASIS EXCLUDING IDENTIFIED ITEMS4 Copyright of Royal Dutch Shell plc 28/7/2011
  • 5. PERFORMANCE FOCUSCONTINUOUS IMPROVEMENT EXAMPLE: TIGHT GAS WELLS MANUFACTURING JV Cost focus Continuous Operational Simplification improvement excellence 50/50 JV with CNPC • Tight gas development requires „000‟s of wells • Sourcing rigs, services and drilling equipment from China Capital • Integrated plan to drill and complete repeatable, efficiency low cost wells5 Copyright of Royal Dutch Shell plc 28/7/2011
  • 6. PERFORMANCE FOCUSCAPITAL EFFICIENCY ASSET SALES PROGRESS 2011 YTD DIVESTMENT PROCEEDS $ BLN - CUMULATIVE Harburg refinery Wildcat Hills Stanlow LPG business worldwide CORPORATE/Woodenhouse U.S. Car Care UPSTREAM  South Texas GOM Assets DOWNSTREAM  Pakistan  Altamira Dominican Republic  14 countries Africa  Cano Sur Nigeria  Chile BM-S-8 Clyde Divestment /exit announced Upstream Deal Complete  Downstream Allocating capital to high impact growth Exit from late-life + non-core positions 6 Copyright of Royal Dutch Shell plc 28/7/2011
  • 7. DELIVERING NEW GROWTHPROJECT START-UPS 2011NEW START-UPS IN 2011 Qatargas 4 • Successful ramp-up of 7.8 mtpa project • > 30 cargoes shipped to 11 countries • Part of Shell‟s 20.5 mtpa world-wide LNG portfolioCanada oil sands: AOSP-1 Upgrader • Mine expansion on-stream Q3 2010; Upgrader Q2 2011 • Full ramp-up expected H2 2011 • Next steps: debottlenecking of 255,000 b/d project; Quest CCS Qatar: Pearl GTL • Train 1 ramping up; 6 of 12 GTL reactors on stream • First shipments of GTL products June 2011 • Train 2 start-up by end 2011 >400,000 boe/d* for Shell ~ $30 bln capital investment Innovative technology, full value chain, long-life returns* PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO 7 Copyright of Royal Dutch Shell plc 28/7/2011
  • 8. MATURING NEW OPTIONSH1 2011 DELIVERY AOSP DEBOTTLENECKING: 1st FID SCHIEHALLION REDEVELOPMENT FID Cardamom/Auger platform • 10 kboe/d; Shell 60%; Shell operated • 145 kboe/d; Shell 36% Gulf of Mexico NA Tight Gas UK RETAIL ACQUISITION • Continued growth programmes • 254 sites; improved network Raízen, Brazil RAIZEN PRELUDE FLNG FID • 50/50 Shell/Cosan JV • 110 kboe/d; Shell 100%; Shell operated Prelude, Australia • Biofuels in Brazil; ~4500 retail stations • 3.6 mtpa LNG, 1.3 mtpa condensate, • Shell 2nd generation biofuels technology 0.4 mtpa LPG CARDAMOM FID SABAH GAS KBB FID • 50 kboe/d; Shell 100%; Shell operated • 130 kboe/d; Shell 30% • Production through Auger platform • Part of Kebabangan Cluster PSC 2010 – H1 2011 investment decisions > 400,000 boe/d* potential* PEAK PRODUCTION; SHELL SHARE: $80 OIL PIRCE SCENARIO UPSTREAM DOWNSTREAM 8 Copyright of Royal Dutch Shell plc 28/7/2011
  • 9. MATURING NEW PROJECTSBRAZIL MARKETING AND BIOFUELSMarketing JV• ~4,500 retail sites; ~10% of Shell world-wide portfolio• Rebranding and enhanced customer offering• Synergies + growth potential Retail BrazilBiofuels JV• Leading Brazil and Top 5 global ethanol player • > 30 kbd ethanol production capacity • > 80 kbd potential ~ 5 years• Shell world-wide trading opportunities• Next generation technologies Raízen – Sugarcane harvesting50-50 SHELL-COSAN9 Copyright of Royal Dutch Shell plc 28/7/2011
  • 10. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER10 Copyright of Royal Dutch Shell plc 28/7/2011
  • 11. PRICES AND MARGINSSHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS$/BARREL $/MSCF $/BARREL $/TONNE US ETHANE US WEST COAST ROTTERDAM COMPLEX OIL GAS (RHS) WESTERN EUROPE NAPHTHA US GULF COAST COKING SINGAPORE NE/SE ASIA NAPHTHA * Q211 SINGAPORE MARGIN IS ZERO • Q2 2011 CHEMICAL MARGINS: BASED ON AVAILABLE PRICES/MARGINS AT THE END OF THE QUARTER11 Copyright of Royal Dutch Shell plc 28/7/2011
  • 12. Q2 2011 FINANCIAL HIGHLIGHTSCCS EARNINGS ($ BILLION) Q2 2010 TO Q2 2011 $ BILLION Q2 11 Q210 UPSTREAM 5.4 3.3 DOWNSTREAM (CCS) 1.1 1.2 BUSINESS SEGMENTS TOTAL 6.5 4.4 CORPORATE & MINORITIES 0.1 (0.2) CCS NET EARNINGS 6.6 4.2 CCS EARNINGS, $ PER SHARE 1.05 0.69 CASH FROM OPERATIONS 10.0 8.1 DIVIDENDS 2.6 2.4 DIVIDEND, $ PER SHARE 0.42 0.42EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS12 Copyright of Royal Dutch Shell plc 28/7/2011
  • 13. UPSTREAM PERFORMANCEEARNINGS OIL & GAS PRODUCTION$ BILLION MILLION BOE/D CONTROLLABLE OTHER UPSTREAM INTEGRATED GASEXCLUDING IDENTIFIED ITEMS13 Copyright of Royal Dutch Shell plc 28/7/2011
  • 14. DOWNSTREAM PERFORMANCECCS EARNINGS AVAILABILITY AND SALES VOLUMES$ BILLION % AVAILABILITY VOLUME OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY CHEMICALS SALES (MLN TONNES)EXCLUDING IDENTIFIED ITEMS14 Copyright of Royal Dutch Shell plc 28/7/2011
  • 15. INVESTMENT AND BALANCE SHEETBALANCE SHEET CAPITAL INVESTMENTGearing % $ Bln 2009 2010 H1 2011 2011 Gearing range Target Organic investment 31 24 10 ~28 Acquisitions 1 7 2 ~2.5 Disposals (3) (7) (4) ~(5) Net Capital 29 24 8 ~25-27 Investment Sustained growth investment $25 - $27 bln net capex 2011 – 2014 Prudent balance sheet management15 Copyright of Royal Dutch Shell plc 28/7/2011
  • 16. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER16 Copyright of Royal Dutch Shell plc 28/7/2011
  • 17. SUMMARY • Q2 2011 CCS earnings $6.6 bln (EPS +52% Q2-Q2) • Oil and gas volumes 3.0 mln boe/d; + 2% Q2-Q2 excluding disposals • $4.4 billion asset sales year-to-date • Start-ups: Qatargas 4, Pearl GTL Train 1, AOSP-1 • > 400 kboe/d*; $30 bln investment • Innovation, full value chain, long-life returns • > 400 kboe/d* new projects launched 2010-H1 2011 • Raízen joint venture EARNINGS CCS BASIS EXCLUDING IDENTIFIED ITEMS * PEAK PRODUCTION; SHELL SHARE: $80 OIL PRICE SCENARIO17 Copyright of Royal Dutch Shell plc 28/7/2011
  • 18. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTS Q&A18 Copyright of Royal Dutch Shell plc 28/7/2011
  • 19. ROYAL DUTCH SHELL PLC SECOND QUARTER 2011 RESULTS THE HAGUE JULY 28th, 201119 Copyright of Royal Dutch Shell plc 28/7/2011